Everywhere we turn we hear about how “The Economy” is causing everyone to tighten their belts and hold off on making any decisions that may seem too risky. It has quickly become the catch-all answer for almost every difficult question that the corporate world is facing.
Q: Why are we letting so many people go?
A: The Economy
Q: Why is there a hiring freeze?
A: The Economy
Q: Why was it 60 degrees in December?
A: The Economy
Of course, not being able to afford to make a purchase is always a good reason to reduce spending, but there are always those necessities that no matter how tight our belt gets, we will find some way to get them. For the human body, food would be such a necessity. And for companies, it is good, hardworking people who keep the organization moving forward.
When times are slow, the typical company’s knee-jerk reaction is to slow down on all processes. Expenditures are categorized as either necessary or unnecessary and then prioritized. Finally, once every process seems contained and controlled, they wait to see what the rest of the world is going to do.
Now to some degree, prioritizing makes perfect sense. The challenge is to make sure you set the right priorities. But once you do, the key is not to wait and see, but to take action.
Where reactive companies only see threats and danger, forward-thinking companies perceive exciting challenges and opportunities. Rather than sit by and wait for the walls to fall, they take advantage of the situation in order to gain momentum so that they can experience a breakthrough. They know that the marketplace is like a seesaw and that when one side is going down something else is coming up. Furthermore they understand that The Economy is not a cause, but rather an effect.
If companies keep this in mind, they may very well find themselves in a position to make significant gains during this time. For hiring managers and recruiters this could mean finding a stellar candidate who may have otherwise been unavailable.
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Below are five powerful reasons why companies that want to come out on top will continue to develop their candidate pipeline.
- Pipeline development is part of their growth strategy. You don’t wait until it snows to gather firewood, and these companies don’t wait until they need a hire to start identifying candidates who are equipped to be a part of their company’s success.
- They know that long-term hiring success requires a process. It is a lot easier to keep a fire going than it is to start one, so these companies will start an ongoing dialogue with candidates with the intention of making an offer when the time is right.
- A developed candidate pipeline removes major competition from the equation. When the time to hire arrives, these companies either have their offer prepared or they are at the top of the candidate’s mind. This reduces the chances of a salary war.
- Having qualified candidates on hand minimize delays in production. Sometimes unforeseen events can cause the ball to be dropped. A developed and managed candidate pipeline allows these companies to rebound quickly and efficiently.
- A company that is actively recruiting is considered a strong company. By continuing to engage prospective candidates, these companies strengthen their own company brand among others in their industry and remain aware of other trends within their market segment.
I’m sure that these five reasons are not all encompassing. Just think of them as food for thought the next time you hear “The Economy” being thrown at you as the catch-all answer for why people are not moving forward.